Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Chile mining royalty bill progresses after committee approves

Published 01/04/2023, 03:54 PM
Updated 01/04/2023, 03:55 PM
© Reuters. Workers and media members stand inside the Codelco El Teniente copper mine, the world's largest underground copper mine, as a LHD electric loader starts to operate, near Rancagua, Chile, November 16, 2022. REUTERS/Natalia Ramos
HG
-

SANTIAGO (Reuters) - A Chilean congressional committee approved on Wednesday a controversial mining royalty bill, putting it a step closer to final approval as part of the government's sweeping tax reform.

The proposal, strongly criticized by the industry, was presented in the middle of 2022 by the government to increase royalties on copper sales in Chile, the world's largest producer of the metal.

Following approval Wednesday by the mining and energy commission, the bill passes to a Treasury commission, where it will again be reviewed and need approval before it goes to a final vote.

Nonetheless, there continues to be disagreement over some aspects of the bill.

© Reuters. Workers and media members stand inside the Codelco El Teniente copper mine, the world's largest underground copper mine, as a LHD electric loader starts to operate, near Rancagua, Chile, November 16, 2022. REUTERS/Natalia Ramos

"The tax rate is a formula that has not convinced all of us," said Senator Loreto Carvajal, president of the mining commission, during the session. "The issue of our future competitiveness in relation to nearby countries and others is still pending," he added.

The government modified the bill in October, proposing a fixed sales royalty of 1% for large miners and removing provisions that linked payments to copper prices. The mining industry welcomed the change, but said the tax burden remained too high.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.